Question

Which of the following is not a disadvantage of using cash instead of credit?

Answer 1

D. is the correct answer. Using cash actually limits how much you can spend since you might not have a large amount on hand. 

Answer 2

The correct answer is:

D) Using cash can make it easier to over-spend since you know exactly how much you have.

Explanation:

Knowing exactly how much you have on hand will actually help you avoid over-spending.

When using cash, you are aware of exactly how much money you have. With a credit card, this may not be the case; this makes it easier with a credit card to spend more money than you should for your budget. With cash it's easier to avoid this problem.